Which is a major problem with Africa having an export economy answers com?

Explanation: As the prices of goods,resources and services in the world market fluctuate causing the economy to be unstable. Hope this helps.

Which is a major problem with Africa’s economy Brainly?

lack of economic diversity. lack of good harbors. lack of labor.

Why should a firm export?

Exporting can be profitable for businesses of all sizes. On average, sales grow faster, more jobs are created, and employees earn more than in non-exporting firms. Competitive Advantage. The United States is known worldwide for high quality, innovative goods and services, customer service, and sound business practices.

What is Africa’s number one export?

Mineral fuels, including oil, hold the largest share of exports with $5.1bn making up 19.5% of total exports. The second biggest sector is gems and precious metals at $2.1bn, accounting for 8.2% of all exports.

Is exporting good for a country?

Exports are incredibly important to modern economies because they offer people and firms many more markets for their goods. One of the core functions of diplomacy and foreign policy between governments is to foster economic trade, encouraging exports and imports for the benefit of all trading parties.

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What is wrong with Africa’s economy?

Since the mid-20th century, the Cold War and increased corruption, poor governance, disease and despotism have also contributed to Africa’s poor economy. According to The Economist, the most important factors are government corruption, political instability, socialist economics, and protectionist trade policy.

How do the political issues in Africa affect economy?

A. The political problems lead countries to abandon their export economies. The political instability prevents industrialization. …

What are the risks of exporting?

What Are the Types of Export Risks?

  • Political Risks. Exporters can face significant political risks when doing business in various countries. …
  • Legal Risks. Laws and regulations vary around the world. …
  • Credit & Financial Risk. …
  • Quality Risk. …
  • Transportation and Logistics Risk. …
  • Language and Cultural Risk.

What is the reason for export?

Exporting can reduce your business risks by developing alternative markets, should a slow down or disruption occur in your domestic market. Manage seasonal slowdowns. Exporting allows you to sell to other markets that are complementary to your domestic customers’ seasons.

What are the benefits of export?

Exporting offers plenty of benefits and opportunities, including:

  • Access to more consumers and businesses. …
  • Diversifying market opportunities so that even if the domestic economy begins to falter, you may still have other growing markets for your goods and services.
  • Expanding the lifecycle of mature products.

What are the most profitable exports in Africa?

In the south and central regions, precious metals and minerals are the biggest exports. This includes gold in Tanzania and South Africa, diamonds in Namibia and the Democratic Republic of the Congo and platinum in Zimbabwe.

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What is South Africa’s biggest export?

South Africa is very open to international trade, which represents 59.2% of the country’s GDP. The country mainly exports platinum (9.3%), motor vehicles (7.5%), iron ores (6.5%), coal and similar solid fuels (5.3%) and gold (5.2%).

What is South Africa’s main export?

Chief exports include corn, diamonds, fruits, gold, metals and minerals, sugar, and wool. Machinery and transportation equipment make up more than one-third of the value of the country’s imports.

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